hello. welcome to "worldwide exchange." the headlines, the british prime minister, david cameron, brings his biggest trade mission to china. china's small caps take a plunge after beijing promises new rules for ipos which could end its freeze on new listings by as soon as next month. thyssenkrupp falls. they sell for less than had been

expected. shop more but spend less. that's the take away from the black friday weekend in the u.s. those who weren't in stores requiring online. trend retailers hope continues today, cyber monday. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. a warm welcome to december here on "worldwide exchange." we have data out from the eurozone. manufacturing pmi in the second estimate has ticked high from the flash. 51.6. the flash was 51.3. the output index was up to 32.1. this was on november data. the new export index, 54. the flash 53.1.

it's driving eurozone activity to accelerate at its fastest pace two years. that growth is still weak. there's evidence of renewed downturn in france and spain as well as firms cutting staff so france still a big concern for the eurozone economy. we'll get more reaction on that in the next five minutes. at the same time, china is rolling out a new ipo plan. a 14 month freeze on new listings. companies will have to provide more disclosure in exchange for letting the market have more say on which deals get the green light. we're in sing ga pure with more market reaction. >> ross, beijing's news will bring the shanghai higher. the shendo boards tumbled 5%. the chinese deposit had its

worst plunge ever. so before today the index had rallied more than 80% this year and it lost over 8% in today's trade. chinese authorities signal the likely resumption of ipo approvals as soon as next month. broker rages got a strong boost as can you see from the first row here. banks mostly ended in the green. health wide, new rules requiring cash dividends as well as the state council's announcement to start a preferred pallet program which may help banks shore up its core capital. but beijing is getting tougher on back door listings. while ipo approvals were stalling, many companies were seeking to buy listed shell companies to gain access to market funding with lower market requirements but this toughens the main boards. many penny stocks had surged earlier this year on hopes that they may become possible show

targets but more than 100 of them plunged by 10% so that's their daily down limit. back to you, ross. >> we'll catch up with you again fairly shortly. meanwhile, the prime minister of great britain, david cameron, is leading the biggest trade group to china. the government said the trip is an opportunity to turn the page. cameron met with the dalai lama last year. the prime minister takes with him over 120 travelers including ftse 100 members. eunice yoon is traveling. eunice, how is this being perceived in china? is it making much news or not? >> reporter: it is making news. he's already been able to woo

and impress locals because he's been tweeting his media on twitter in chinese. he's met with the president and the whole point of his mission is to thaw what's been frosty relationships between the u.k. and china, at least on the political front. 18 months ago david cameron had met with the tibetan spiritual leader, the dalai lama. that was not something that beijing was very happy with. they believe the dalai lama is a separatist and enemy. it was only more recently where david cameron had voiced his opposition to tibetan independence that we started to see those ties warming up and now as you were just talking about, he is in china. he is leading a massive delegation here and the whole point of that is really to drum up some chinese investment and hopefully, at least in the british government's eyes, bring

trade back home. in terms of the official press, it's been very warm and friendly. the tone was very friendly this morning. the state tv broadcaster actually was playing up his visit today talking a lot about how big this mission was and also about how the opportunities for the british in china and with the chinese were plentiful. ross? >> all right. thanks for that, unit. we'll have more on the trip of course online as well. eunice from shanghai where the prime minister will be going. don't forget, an exclusive story on how the chinese eye u.k. banks. china's factories are de defying fears of growth slow down. they're holding steady. china's official pmi held at an 18-month high of 15.14.

it improved on the flash estimate. joining us with his thoughts, raymond yeung is joining us. does this demonstrate economic resilience to you? >> seems to me the pmi is showing that the chinese economy is staying stable. the growth momentum can extend for a couple more months. bear in mind the conclusion of the very good platform to the business community at the moment because the plenum points to more opportunities for private sector and also an acceleration of all of this industrial reform. that would generate a massive amount of opportunities for not only the private sector in china

but also for foreign entities that would like to invest more in china, too. >> how long before we see the impact of those reforms in economic activity? you look at some of the breakdown, we have a renewed contraction of employment, slower pace of restocking. there are some weak spots still. >> in the near term of course we can't say that the reform will immediately create a lot of positive impact on the economy and materialize in terms of quantity, but the overall involvement is pointing towards a foreign entities with a lot more opportunities to invest in china and the regulators willing to lower the entry barrier for foreign investment. in terms of the pmi figures, of course the lowering of the raw material factors may reflect

that. the business communities remain very cautious about the head winds coming, especially with the change in global involvement and also the trade outlook at the moment is still very puncy. but overall in six or 12 months' time i believe that both momentum will pick up quite nicely and also we formulate a lot of domestic opportunities for all of the state owned enterprise to get access to. >> how quickly do we sort of -- can we move away from the traditional drivers, which is heavy investment led brisk export sales? are the things that we're seeing in the reform process going to speed the switch away from that kind of growth? >> currently china has an overall policy to balance the whole economy and trying to downplay significance of

reliance on exports and that will reduce the volatility to the shang geng market. this requires a full-fledged reform by different units of the government. for example, of the headlines of this is comprehensively deepening reform. it means that the leading group of the communist party will push forward the reform cutting across different ministry including the pboc. the exchange rate libl lieization. today the pboc releases a document on the shanghai free trade zone. this will be a role model in other cts to follow in three years' time. i believe all of these three things are accelerating and we'll see some progress probably the same time next year. >> thank you for that.

raymond yeung joining us. let's bring you up to speed with where global equities are. we're 1:10 minutes into the trading day. the ftse 100 was down 20 points. we're weighted to the down side, 7 to 3. we've had three months of gains for u.s. equities. the dough and s&p up 3.5 and 2.8 respectively last month. that's not doing too badly. it hasn't helped us on the second trading day of december. the xetra dax is up 800. 9,914. the cac quarante is down. susan cooks is going to sell for $1.5 p billion. nippon, steel and metal, they've been trying for a year and a half to find a buyer for this unit. it's draining billions from the company. the price a little bit less than have expected.

it also comes as they announced plans for as much as 10%. the stock is 6.5%. bank of ireland, that's down 2.8% today. it doesn't need further capital after quality review. it said the bank said it expects to retain a buffer of 10%. check in on bond rates for you. keep your eyes on 10-year treasury yields. 2.78%. on the currency market, sterling doing very well today. we've been up to a two-year high against the dollar. currently 1.6393. 10 1/2 month high as well against the euro. we'll be looking ahead to the bank of england later and george osborne's report. we saw tybart trying to recover. the aussie dollar and kiwi doing better. we're up at a fresh six-month

high against the yen. euro dollar just below 136. let's get back out to suxuan. the dollar yen trading around 10 2.40. it fell flat. we saw muted trading as investors remained on site lines after the thanksgiving holiday breaks. south korea, the pull back despite firm november manufacturing data at home. ship builders losses on some profit taking. australia's asx 200 had a seven week flow down by 3/4 percent. the rba is expected to keep rates at a record low of 2.58. it could continue to talk down the aussie dollar. we did see some green in southeast asia today. the indonesia ripea jumped over

2% after a suppressed trade in october. really leading the gains higher by 1.5%. back to you, ross. >> all right. sixuan, thank you very much indeed. 300,000 people have been taking to the streets of the ukrai ukraine. the heavy weight boxing champion is leading the protests. he's defying a court protest, antigovernment activists stormed state buildings and clashed with riot police. about half fixed. israel's finance minister exclusively revealed to cnbc the current state of his country's economy. we'll have more in an exclusive interview after this. ♪

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you'reuncer: >> announcer: you're watching "worldwide exchange." israel's finance minister says repairing his country's economy will be hemmed by a better split in the regions it trades with. hadley has been there exclusively. hadley? >> reporter: good morning, ross.

so basically it's been a pretty tough nine months for pierre lapede. many said he wanted the foreign affairs portfolio. he was given the finance portfolio. some rough times for the finance minister. had he to raise taxes in order to cut the $11 billion deficit. raising taxes is not something that's designed to make you very popular as well as cutting government spending. i spoke with the finance minister and he's pretty b buoyant. the public outcry on that, people are pretty pleased. i did ask him, is this just kicking the can down the road. take a listen. >> we have to reduce government expenses in a way that will not hurt all the services we want to give to the government. the fight for efficiency in all the governments around the world

is a hard fight. we know now things we didn't know before about how to do it because we've been doing it for quite a while. this is why things are better now. i think we're going to have a new fiscal rule which will allow us to reduce government expenses in a way that will allow us not to raise taxes. >>ing where do you see that in order not to raise taxes in 2014, 2015. >> i can tell you we're not going to hurt the budgets of education because we are an education modulated government and of course health and welfare. these are the budgets that we are going to try to keep the way they are. we think there's some room for some cuts in the defense budget. not too much unfortunately. we live in a very shaky

neighborhood it's very detailed. in this god is in the details. >> the federal reserve is now saying that this is over and that's causing a great deal of volatility in the markets. how will that impact the israeli market? >> first, foremost, 26, 27% of these exports are to the united states so this is immediate. it's a good thing that we have this separated. i mean, 26% to the united states, 30 something to europe and the rest to the far east and the rest of the world which means we are balancing the way that one area of the world is in trouble or collapsing or the second 2008 is happening, we are better protected against this, but the united states is the biggest sister. whatever happens there influences us. of course, we were following

bernanke's policies and we, like the rest of the world, felt he was doing the right things in order to restabilize and bring growth from the american economy. we are benefitting every time the united states economy is doing better. >> when you came to office eight months ago you described the israeli economy as a financial catastrophe. how would you describe the israeli economy today? >> an economy after a catastrophe, that has come back after a catastrophe. it was a handmade catastrophe with some sort of long-term mismanagement. we took some hard measures to fix this. i think it is fixed right now or halfway fixed. i'm hesitant because i want to be careful about this when i think we're doing better. >> so there you heard finance minister lapede saying he does think the economy is doing better. that's a sentiment we're hearing

echoed by fitch ratings. they're upgrading the credit rating last friday, i believe. basically what you have here is a buoyant finance minister. he's talking about defense spending cuts at a time when at least for the israelis as well as the gulf arabs, there is a tension in the region toward tehran. a bit of a buoyant feeling here in israel. ross? >> good to hear. the defense cuts are an interesting item. thanks very much, indeed, for that, hadley. that's the latest from tell aviv. the don of the robot is not dead. "60 minutes" was told that the so called octocopters can carry items weithat weigh 5 pounds.

it could be introduced in 4 to 5 years depending on cost, noise and there is the safety issue. can it work or is it amazon's idea of pie in the sky? get in touch with us. let us know if you believe in drone deliveries or point out the flaws in amazon's argument. e-mail us or tweet or direct to me @rosswestgate. how do they need to know if you are in? don't know how that works. we'll take a short break. still to come, as the british chancellor george osbourne says the work to deliver a recovery is not yet complete, investors get the latest health check with manufacturing apple data released after this. data relead after this. data released after this. data released after this. data released after this. data released after this. o data released after this. u data released after this. t data released after this. p data released after this. u data released after this. t data released after this.

headlines from around the globe, british prime minister david cameron brings his biggest ever trade mission to china aiming to kick start a multi-billion dollar deal and putting the dailai lama behind him. thyssenkrupp is at the

bottom of the 600. they're selling a steel plant for less than the market expected. shop more, spend less. that's the take away from the black friday weekend in america. for those who weren't in stores were buying on line, a trend retailers hope continues today with cyber monday. we're going to get the latest snapshot of british manufacturing activity with the manufacturing pmi in around about 50 seconds. before we do that, recap where we stand with the european equities. softer in the u.k. down a quarter of 1%. xetra dax on a regular high. cac quarante up. manufacturing pmis did take a high, 51.6. 51.3 was the flash. it's the highest since june 2011.

apple new orders up. german manufacturing pmi ticking up. it masks a difference. french pmi down on a five month low. 48.4. 21 consecutive months now and spanish activity fell back below the 50 mark which separates expansion from activities. as far as the u.k. is concerned, we are looking for a reading this morning of around 56 and it's 54 -- hang on. the manufacturing pmi, 58.4. the highest since november. revised 56.5 in october. so october's revised higher. november's coming stronger than expected. the manufacturing employment index 54.5. that's the highest level in 2.5 years. it was 51.9 in october. sterling was already up in two-year highs. the dollar is rebounding.

back up 64.12. been up to 164.3. the pound has been up two and a half month highs against the euro and 10 1/2 month highs against the euro. still gathering steam joining us with his thoughts is phillip short, chief investor. phillip, another month of numbers. implications? >> decent numbers. market implications, sterling should go higher on that figure having started the week on a positive note anyway. sure great, positive data. manufacturing sector up back on to its feet again. let's not get carried away. the fact that this is a 2 1/2 year high should remind us that we're 2 1/2 years ago things weren't particularly great and the manufacturing indices fell back again. so i'm encouraged by it. >> how different is it now to

two years ago? >> one thing that is banned from our desk at invettech is this time it's different for fairly obvious reasons but i think, yeah, what we've got now is a recovery that is more based on final demand and it's more broader based. if you look at the recovery that we had in '09-'10, a lot of the improvements in the economic numbers at that time were because of the stock cycle, which almost by definition are temporary. this time things do look more solid. it's no time for being complacent. >> mark carnie last week said, look, we have to take back the funding. this stronger economic data, how does it feed through, a, to what the chancellor may announce? because clearly he's going to have a bit more tax receipts and strong growth in the overall as originally forecast and also future predictions of bank of

england and, you know, when we hit the triggers. >> yeah. i think if you -- if we start off with osbourne's position first of all, this is going to be the first autumn statement or budget statement that he will actually look forward to delivering. certainly over the past three years we've had a cycle of downgrades of growth forecasts, increases in government borrowing forecasts. this time he can stand up and say our forecasts are on track. in fact, the obr has increased its growth forecast and reduced its deficit forecast. now he's not going to probe. there are several good reasons for that. i think firstly if you're looking a the the deficit this year, we think that, you know, we're looking at a deficit of 105 billion pounds rather than the 120 predicted in the budget. that's a growth improvement. borrowing of 105 billion pounds is nothing to be too pleased about. it's extremely high level. there is much more work to do. and, secondly, politically osbourne realizes that gdp

numbers do not equate to the electorate's view of their own personal circumstances so he can't really say how good things are, helping concealers. >> there's still a squeeze, isn't there, on the real wages because inflation is running higher than average pay. there is a question whether politically this economic recovery has come too soon, whether it may peter out by the time we have an election in spring 2015. >> there's always the risk, but if you're looking at a better housing market, better mortgage availability, perhaps a eurozone recovery and stronger growth out in the u.s., you're looking at a number of drivers which should, if anything, gain momentum over the next year, year and a half. if i were the chancellor, i wouldn't want to delay the recovery anymore. i'd want that good news story to filter through in terms of the broader economy but also allow households perhaps more time for their own financial improvements

to become more receptable. >> lending was up 5.8 billion. participants made efforts down to 5.5 billion during the third quarter. whatever those figures say. the evidence is actually for lenders having less and less of an impact in terms of what the banks were doing. what does the -- what discussions now at the bank this thursday hinge around? clearly the strength of this recovery? as long as we don't get any average meaningful earnings inflation, actually, will they say it doesn't matter if we trigger -- if we go through the threshold -- they don't call it trigger, threshold of this 7% unemployment rate. if inflation is still low, we don't have to worry. >> well, we think that the big policy this week, fiscal policy rather than monetary policy. no one is expecting any changes

in either the bank rate or with the level of qe this week, and quite rightly so. if we go back a couple of weeks ago the bank of england's november inflation report, effectively the message hammered home then was, look, you can have a debate whether interest rates may go up in 2016 or 2015 or even 2014, but they're not going up yet. and that was really what mark carnie was telling participants there. so i think in terms of the short-term outlook for monetary policy, really it's no change. i'm sure members will be debating the housing market and, you know, where things might go over the medium term, but nothing yet. >> i recap the pmi just before we had the u.k. data out. just remind you, november pmi, 51.6 in manufacturing. the highest since june 2011. within that the french numbers are a bit of a shocker. five-month low 48.4 compared to the trend, phillip.

when you have what looks like to be a french economy that's struggling with recession at the moment. it's still contracting. the spanish pmi that has slipped back below 50, we know that those economies and then a number that's overall stronger, how do you divide the tea leaves. how big a concern is france? >> well, it's a big underperforming economy. if you had looked at the economic outlook for the eurozone a couple of years ago you would have thought this is going to be clearly a case of core versus periphery with the larger economies performing better than the program countries than the peripheral countries. france has rechanged the game here because it clearly is struggling. there's big discontent with the current government. can the government turn around economic policy to instill more confidence in the economy? that's a very big question. but certainly the french economy

is acting as a drag on the zone as a whole. >> ecp lose the policy further? will they cut deposit rates? >> well, we suspect that they won't. if you look at the inflation figures that have triggered the november rate cut, most of the big 4.7% was because of a fall in energy prices. most people i speak to, if you cut their gas bills by, say, 10%, they're not going to be worried about deflation, they'll spend the extra money. actually in the short term that movement in price could actually stimulate spending rather than cause worries about deflation. now over the medium term, of course, as employers say the deflation is coming down, wage cuts will be more aggressive, that's when you enter potentially a deflation marry situati -- deflation air ri index.

>> it's still falling there. phillip, good to see you. chief economist at investech. i don't know if phillip was shopping this weekend, but they did in the u.s. they didn't spend as much. 141 million people shopped at least once. that's up from 139 million a year ago. the average person spent around $407. 4% less than the black friday weekend last year. total spending is expected to hit 57.4 billion over the four-day period down 2.8% from last year. they say discounts took a toll on sales and stores will continue to aggressively promote deals to entice budget contest and value focused consumers. online sales might make a difference. sales were up 17.3% on thanksgiving and black friday with the most visited sites being amazon, ebay, walmart, best buy and target. retailers are aggressively

pushing online deals. three want to benefit from cyber monday. the national retailer association predicts 131 million people will shop online today versus 129 million last year. fedex expects cyber monday to be its biggest day shipping 129 million packages worldwide. french businesses could see an easing in restrictions according to a government commissioned report. stefan has more for us out of paris. i'm sure he's been heavily shopping over the weekend. stefan. >> the report, ross, has been unveiled just a few minutes ago, half an hour ago. let's face it, we're not expecting any deeper revolution in the trading. the report doesn't call into question the basic rule of sunday close, but it wants to clarify the legal frame for sunday shopping with a list of sector that can do business on sunday, but instead of adding

more sectors like, for instance, the diy stores that have been putting a lot of pressure recently on the government, this report is suggesting to remove some businesses and sales from the list to open on sunday like, for instance, the furniture store. that means that in practical terms shops like ikea won't be able to open on sunday in france in the future. that's only a proposal. the prime minister wants to turn that into a low as early as 2014. next year. on the other hand, the report wants to make the system more flexible. they have the possibility to give all the shops five sundays per year when they can do business and this number will -- would probably raise to 12 sundays per year. now you probably see the point, ross. the french system was already very complicated and this report might make it even more complicated. for instance, if you've been traveling to paris and you've been trying to make some

shopping, everything is open on sunday. it's a tourist stick area. all the department stores are closed in opera although they should be open because it's a tore ris stick system. from what i've seen in this report this morning, it's not going to make things easier. i was listing very carefully the conversation about france a bit earlier. that's a way to create jobs and to reduce the french economy opening more shops on sunday would create thousands of jobs. that's the view from retailers but apparently it's not going to happen with this socialist government. >> yeah. i don't know how you -- yes, who knows when you're in a tourist area and you're not in a tourist area. stefan, we have news out from olston. the co says the chinese buyer for the train unit is not the most favored. i was there when francois

holland said we'd like china to come and do trade with us. david cameron is trying to drum up business. the ceo says we don't want a chinese partner. why do you think that is? >> well, it's not very easy anyway because france would like to welcome all sorts of capitals and investment. there are restrictions when it comes to defense, strategy sectors. the country is concerned so it doesn't really surprise me. the other thing for alstom. >>, they're trying to export their train. they had a warning on forecasting new orders because as a result of the austerity policies in europe, there are less contracts for trains and for power plants. this is a problem for alstom. they need help from other countries and china.

barkleys could fund fracking in yorkshire as earl ly as next year. northshire took sales in rydale. if the test results are encouraging, the group would seek to drill three to four wells as soon as possible. meanwhile, the co-op bank is taking a step closer in its attempt to complete a 1.5 pound rescue. intervention by the bank of england looks less likely. it's looking for a recapitalization plan. it will cede control from its bond controllers. it will exchange their debt for new bonds as well as shares. if you've got any thoughts or comments, get in touch with us. worldwide at cnbc.com. still to come, unrest in thailand heats up as protesters call for investors to step down. we'll be in bangkok for the

latest after this.

>> announcer: you're >> announcer: you're watching "worldwide exchange." tempers continue to flair in east asia over china's newly declared air defense

identification zone. we're here from the anything ni. >> reporter: u.s. president joe biden is set to visit the region. his first stop is japan. he will arrive in tokyo later tonight be and meet with prime minister shinzo abe later today. the two countries have been clear in not acknowledging china's air space claim by continuing military operations over the area. china has said all flights, including military and passenger planes, must submit flight plans in advance for those that pass through the newly declared air zone. so far the u.s. has sent bomber planes without request. also at the meeting biden is expected to call for tokyo's

cooperation in wrapping up the trans pacific partnership free trade talks in hopes to reach an agreement. that's all from the nikkea business report. >> thank you for that. chinese investors are hoping to cash in on the abe vinnestment. go to c fl bc and see why wealthy chinese are dipping their toews into japan's economy. thai protesters are trying to talk with the government. they've called for strikes and giving the prime minister a two-day ultimate tum to hand over he power. over the weekend two people were killed. today tear gas, water cannons and rubber bullets were used to deter the protesters. the military will stay neutral. she has refused to step down saying the thai majority still want her to lead. dane jamora is the leading

controller. dane, thanks, indeed, for joining us. we had a surprise rate cut by the bank of thailand this weekend. how long or how will the prolonged protests in thailand impact the economy? >> reporter: thanks, ross. i think everybody would agree the thai economy over the past few years has done incredibly well despite the political back and forth and disturbance. it has essentially full employment. you have record amounts of investment from japan. the s.e.t. has been one of the best emerging performing markets in the past three years. that goes to the underlying strength of the economy and the management, if you will, of the economy. so far i don't see this incident that's been happening over the last few days really affecting the economy all that much. >> i suppose it depends on

whether it impacts tourism, doesn't it? >> yeah. so obviously tourism, you know, is a big part of the economy and you can have kind of a blip down. you get these kind of scenes on television playing around the world, but, you know, i flew in here over the weekend and the plane was full. it may have had a minor impact, but i think if it winds up or winds down pretty significantly, expect it to be approaching the king's birthday on thursday, then probably not too much damage in the long run. >> what do you make of the protests and their attempts to topple? what is, after all, a democratically elected government? >> yeah, exactly. i think that sometimes is lost on, you know, the greater public or media viewership. this is a democratically elected government and in this case you've had a, you know, sizeable but still fairly small minority attempting some fairly

provocative acts to get a reaction from the government, from the police, from the military and that adds a term on your show, involves things like invati invading the headquarters of the royal thai army. the government has had a great deal of restraint understanding the goal was to provoke. the government has done a good job of managing it and keeping the levels of violence to a minimum. >> it's a strange thing, isn't it, to talk about a people's coup to replace an interim r rim, unelected government. how is business viewing this? >> well, i think, you know, for businesses that are already hear, thai businesses that are already operating, they've seen this before. it's been going on at least since 2006 in one form or another and most kind of

violently in 2010 and, you know, i think it's been built in, so to speak, to most businesses into the resilience plans, contingency plans. you could argue that it might deter new foreign investment but then as i said, this is a real -- thailand is a real favorite for japan in particular and japan has continued to pour investment into thailand. it's their major offshore manufacturing industrial base that has not abated despite what's been going on. so i think, again, as long as it winds down as we expect it to in the very near future, then there probably won't be much of an impact on business investment. >> what's the worst case scenario and how likely do you think that is? >> well, the worst case scenario would be if the protestors had managed to provoke a reaction from the government. you've had deaths with protesters. the deaths that you mentioned earlier, it was important to note, those were not at the

hands of government forces. those were internal conflicts. if you had something like that where either the military or the constitutional courts or any corruption commission had found an excuse basically to dissolve the government, then you would have had a great deal of unhappy government supporters as a result of an action like that. that would probably be a worst case. again, as i've said, they've avoided that, and i think fairly skillfully knowing that that was the goal of the protesters. so i think it probably does pretty well. we'll see what next week brings. >> yeah. and, dane, as you say, that's more or less likely to happen. i suppose one thing that happens is if we see the bart reducing on the back of this, whether that will concern the bank of thailand at all. >> well, they did cut the rate

and one -- you know, you could argue that, in fact, the boss has been incredibly strong for many years. thailand is a very dependent export economy, particularly certain key sectors. so of course it all depends on the quantity, you know, if it dropped precipitously, then that would be a concern. if you go back to 2010 when there are much more serious acts of violence, it affected the market but it didn't affect them probably as much as maybe some people expected them to or as much as they might have been affected in other countries. >> thanks for that, dane. dane chagmame joining us. 300,000 people meanwhile have been on the streets of ukraine sunday with opposition leader calling on the government to resign. speaking to protesters in central kiev, the heavy way

boxer have accused them of stealing european's dream of freedom. they stormed state buildings and clashed with riot police. and so far nine people have been confirmed dead after a police helicopter crashed into a busy pub in glasgow on friday night. scotland's first minister described it as a black day for the country. prime minister david cameron paid tribute to the first responders on the scene. hundreds attended a memorial service for the victims and their families at glasgow cathedral yes. a commuter train derailed on sunday morning. four people there were killed and 63 injured when the metro-north train traveling from the hudson valley to manhattan went off the tracks whilst rounding a curve in the bronx. the national transportation safety board has recovered the

train's black box recorders and investigate whether excessive speeds, mechanical problems or human error led to the accident. india is saying it won't compromise on plans dehli is planning to go forward with a plan. the trade minister still left the door open to an interim subsidy deal. factory activity is growing in india. hsbc pmi moved out of contracture. it's got solid gains in new orders. in another welcome sight, it has stronger gdp, 4.8%. whilst in australia, graincorp

numbers fell. it blocked its $2.6 billion takeover deal with archer daniels midland. a reminder what's on the agenda in asia tomorrow. world trade leaders begin gathering in bali after a failed deal last month. in australia, the centralback will hold rates at a low. and after changing its expansion plans, tinto talks updates with shareholders at its investors day meeting. and the dawn of the robot delivery man may be joining us. amazon is testing drones that can deliver packages within 30

minutes of the order. octocopters could deliver packages weighing 5 pounds. the drones could be done in the next four to five years depending on cost, noise and safety issues. we're asking you today, can amazon's idea work or is it pie in the sky? get in touch with us. let us know if you believe in drone deliveries. whether you've thought of the flaws in amazon's argument. what happens if you're not at home when a drone turns up? how does that happen? get in touch with us. e-mail us or tweet. still to come, fedex expects to move an estimated 20 million packages for cyber monday. just how big is it going to be? ya know, with new fedex one rate you can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate.

simple, flat rate shipping with the reliability of fedex.

. this is "worldwide exchange." i'm ross westgate. david cameron brings his biggest trade group to china. china's small caps take a plunge after beijing promises new rules for ipos which could end its freeze on new listings by as soon as next month. shop more but spend less. that's the take away from the black friday weekend in america, but those who weren't in stores were buying online. a trend we hope will continue today on cyber monday.

thyssenkrupp is at the bottom of the market. it will sell for less than the market expects. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. and if you're just joining us state side, a very warm welcome to the start of your global trade day here in cnbc. the start of december. 23 days until christmas as my daughter is only too well aware. the dow market is currently some 13 points above fair value after being up 3 1/2%. the s&p up 2.8% for the month of november. they've had three months in a row higher and we're on an eight-week winning streak. the nasdaq has some four points above fair value. 13 year high for the nasdaq. the s&p is pretty much on fair

value. the ftse has been softer currently down .2%. the ftse was down 23 points. this morning, two hours into the trading session. we're on all time highs for the germany market. the ftse is the weak end down 1.25% as well. ukraine, meanwhile, we've seen more riots after the president, janokovicz, failed to sign the trade deal. bonds are being sold off as well. talking about bonds, 10 year treasury is a little bit higher. it's a big week for the u.s. with the unemployment news coming at the end of the week. on the currency markets, dollar yen's been up to a freshl six-month high today, 102.65. moving on. we're above that.

102.70. euro dollar steady but weaker. low 136. we saw european pmis tick up. 51.6 from 51.3. the highest since june 2011. the french pmi getting worse. the french a weak spot of the eurozone down at a five-month low. on the currency markets, the pound, 164.11 is where we stand at the moment. pretty much up near a two-year high against the dollar. manufacturing pmi half an hour ago coming in stronger than expected. employment component of that coming higher as well. it's not just in europe that we've had pmis. chinese factories have been defying fears. it said growth holding steady. let's get more reaction to that. sixuan is with us out of singapore. >> reporter: thank you, ross. those china numbers steadied but

investors remain cautious. the dollar yen still trading around 102.40 for the nikkei to end flat. it's beijing's new announcement on ipo approvals dominating trade. the shanghai composite lost .6%. shenzhen lowered 5%. shenzhen had its worst plunge ever. before today the index had rallied more than 80% this year and it lost over 8% in today's trade. chinese authorities signaled the likely resumption of approvals. chinese banks also ended mostly in the green today helped by new rules requiring cash dividends as well as the state council's announcement to start a preferred shares pilot program which may help banks shore up their core capital.

beijing is getting tougher on back door listings. while ipos were stalling, many companies were seeking to buy listed shell companies to gain access to market funding with lower approval requirements. the new rule toughens these requirements on the main boards while bending backboard listings. many penny stocks surge the earlier this year on hopes that they may become possible shale targets. more than 100 of them plunged down by 10% in today's trade. back to you, ross. >> sixuan, thank you. meanwhile, prime minister david cameron is taking brittain's biggest trade delegation to china as he embarks on a two-day attempt to reboot the trading partnership. the government said the trip is an opportunity to turn the page after cameron met with the dalai lama last year. the prime minister takes with him over 120 people as well as ftse 100 people and small and

medium sized businesses. on cnbc.com we have a story on how chinese investors eye the u.k. banks. today's also cyber monday, the biggest online shopping day of the year. it's predicted to be bigger than ever. the nrf says 131 million people will make purchases from retailers' websites. fed ex expects today's day to be the biggest expecting to deliver 122 million packages online. online sales since thanksgiving and black monday rose 3.7%. we're joined by brian roberts. the fact that we had such a late thanksgiving, cyber monday is coinciding with the first monday of december which is traditionally the biggest ordering day online? >> very much so.

everyone has just been paid the final paycheck before they can feasibly order online to guarantee delivery for christmas. a lot of people have been in the stores, black friday. general christmas shopping anyway. also as well, the sunday newspapers pretty much on a global basis are full of recommendations for decent gifts for friends and family. so lots and lots of impetus behind cyber monday in terms of being one of these massive days. >> do we still need something like cyber monday? we've had black friday, this whole shopping weekend. surely now it's a point where ordering online or going to the stores, we do it all the time. >> yeah, i think -- >> i say next year we don't need to calling it cyber monday, do we? >> a lot of ecommerce businesses or multi-channel retailers have improved their offer, made it a lot more sophisticated and efficient. you no longer need three weeks. many retailers are offering same

day or next day delivery. it might be over time this big impetus might dissipate slightly. what we might see as well is kind of a second mini cyber monday next monday. shoppers are aware they can be a bit more relaxed getting there in time for christmas. >> we get more relaxed about fulfillment. >> very much. drone deliveries. >> what do you think of that as an idea? >> it's not without merit but i think it does have the potential for carnage. i think perhaps we can find this under savvy public relations that amazon let this slip on cyber monday. >> in the u.k. what was interesting was in the first time ever retailers were touting black friday deals. we never heard this raised in brittain. john lewis was putting out promotions. are all promotions eating into a lack of overall revenue for retailers? >> i think some retailers it

will. i think the asta u.k. business specifically bought product purely for black friday. it wasn't product that was selling. i think what black friday does is it gains people forward rather than thinking incremental. >> i was thinking of buying products for promotion. it's not a promotion, is it? >> asta's plan, they bought in conjunction with walmart, big-name brands, tvs forex ample. >> they wouldn't normally sell? >> they sell some of these, but there was some great dealer stock included in the black friday promotions. people like john williams and argos, this is drumming up trade. >> thank you for joining us. brian roberts. now as mentioned, we were just talking about it, the dawn of the robo delivery man may be upon us soon. the amazon chf also says the

company is testing drones that can deliver packages within 30 minutes of customers placing orders. he told cbs's "60 minutes" that the so-called octocopters could carry items weighing up to 50 pounds. do you think this is pie in the sky or it can actually work? >> they said if you're not at home they would drop it on the porch, presumably if you have a porch. i'm not sure this would work for city dwellers so well. if it drops packages on the porch, who will pick them up? there we go. interesting idea. send us your views. e-mail us or tweet or, indeed, direct to me @rosswestgate. still to come, the ties remain strong despite washington and tell a viv giving given views. they say the relationship is good.

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israel's finance minister, meanwhile, has praised negotiations between the u.s. secretary of state john kerry and the palestinians. hadley gamble has been sitting down with pierre lapede and asked him about the strength of israel's position in europe and distancing himself from the palestine dispute. >> the problem we had was the e.u. was over -- right now, over symbol subject. it seems like we have solved this, but this is a signal and we cannot afford avoiding this signal. this is -- europe is telling us we want you to be more proactive

and for myself i tell them, yes, i think we have to be more proactive as well. it's not an easy task. it's not a short-term thing. >> you said that when it comes to negotiations you love low expectations because that means if anything gets done, everyone is pleased. when you look at what's been going on in geneva, the agreement with tehran, would you say that your low expectations were met? >> i'm not sure we have such low expectations. i would separate the two issues. i would -- and i like the fact that the negotiation with the palestinians is under the radar. i like the fact that secretary kerry is the only one making the announcement. it's a better way of handling things. we have -- people have to remember, when people wonder how is it that we are so loud

against this agreement with iran is because for us it's not academic or theoretical, it's existential. here's a regime that's been loud about -- not about having dispute with israel but about its wish to -- and commitment to the destruction of israel. i don't think there are other nations in the world with somebody -- another country saying we want to make sure they will disappear, we want to make sure they will all die. so i think we have painfully earned the right to be more concerned than anyone else. maybe the most strategic asset we have is their kind of impetus in the united states government

throughout the years. we're going to be out loud or maybe even blunt about our concerns, but we understand the united states mean well and it's best under very, very complicated circumstances and we think we have earned the right to be listened to. >> so how much damage has been done to the u.s./israeli relationship? >> i think it's okay to have disputes within the family as long as we keep it within the family. so i think we're still in the frame of being fine. >> the israeli prime minister talking exclusively to hadley gamble who joins us from tel

aviv. hadley, as far as the economy is concerned, we had a bit of a manmade catastrophe. what's happening to israel? what may happen if we get fed tapering in 2014? >> reporter: well, it's interesting, ross. when he took office nine months ago he was battling an $11 million deficit. it was the highest deficit in history. when i asked him about tapering, he said anything that's good for the u.s. economy is necessarily going to be good for the israeli economy. they're the largest trading partner with israel and the e.u. is second. the conciliatory tone is one that we heard him talking about tehran. we're hearing it from the gulf states as well. you have the gulf arabs as well as the israelis, they're kicking at the traces but in the end they realize they're still pulling the same cart, which is the cart of the u.s. foreign policy so they have to get on board at some point.

later this week in bahrain, foreign ministers from the united states, from the u.k., gulf states, egypt will be meeting and sitting down. they invited their iranian counterpart as well. we can learn more about how this agreement is going to play out. >> yeah. so we'll have to see how that plans out, hadley. another follow-up. cutting things, that's interesting when we're wondering what was going to happen with iran. >> exactly. he gave me a wink. he said there was going to be fights with the ministries. he didn't want to touch education or hurt welfare basically spending. he doesn't want to hurt the israeli middle class because the middle class are the people that elected him. he's a former news man himself.

he's coming in from the outside. he went after defense spending. it is a bit tricky when you're surrounded in the region, but he said it's something we have to take a look at. >> hadley, thanks for that. great stuff. the latest from tel aviv. still to come on "worldwide exchange." who needs twitter? i'm joined by the nasdaq speaker. [ male announcer ] this store knows how to handle a saturday crowd. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing.

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with premium care maintenance included. ♪ now now despite missing out on the most eagerly anticipated tech ipo of the year, the nasdaq has hosted 120 offerings in 2013. that's the fastest pace for the exchange since 2007. whilst twitter made the headlines, they say it's the health care center leading the way. joining us is bob mccooey at nasdaq imx. >> thanks for having us. >> are you over not getting twitter? >> we're over it. >> are you a bit sore about that? >> once the decision is made, we move on.

there's 120 ipos with us so far. the last high water mark was 252. we'll surpass that this year. there's a lot of companies gearing up between now and the end of the year and certainly for '14. we're well beyond it. >> of that amount that's listed, how many of those exits from private equity companies or venture capitalists. >> more than 50% have some kind of money even in the earliest stage money, people would say maybe well of 80% of them were funded by some kind of sponsor. >> are taking money out? >> are taking money out but many have been in these deals for a long time. longer than they would have expected because of the crisis we went through. earlier we saw h.d. supply, c.d.w., norwegian cruise lines. some of the cv deals, the sprouts and noodles of the

worlds. >> there's a lot of pent up demand. how does that set us up for 2014? is there still going to be this pent up demand or have we gotten through it? >> no, '14 looks like it will be a stronger year. we're talking about the balance of the year. because of the way it's acted, there are companies that have moved up their time line. this they were talking about '14, '15, and now they're moving it up to the beginning of '14. >> how many ipos were health care? >> first of all, health care was up 250% year over year and 52 total health care, 35 of them were biotech. we're going through a long stretch biotech ipos in the single digits. >> just sort of general health

of the market, where we've come. one wonders whether it stays the point? >> there is a lot of risk that comes in with ipos. companies are making a leap of faith that these private companies can transition to be public companies. the risk continues. in a lot of the biotechs there will not be profits for many, many years. to see so many investors putting their money on the line is positive. >> very briefly, are the exchanges changing? it's kind of blurring, the distinction between the exchanges. >> i don't think we're blurring, what's happening is the nasdaq is beginning to resonate. having a crack, the only dow stock, texas instruments had a

marriott, american airlines come to us, companies that were listed for 20, 30, 50 years on the new york stock exchange are looking at nasdaq and realizing that we have a great value to provide to them to support them for years and decades to come. >> thanks for that. enjoy your confidence here in london. talking about twitter, today we have an expiring of the -- sorry, yesterday, but in stocks trading today, the research on the twitter ipo. we can get a lot more sale of twitter stock. also still to come, the investigation into why a train derailed in new york over the weekend has begun. we'll be at the scene with the latest. as we do so, the u.s. futures suggesting a quiet start to december. remember, we've been up three months in a row for major u.s. indices. we've had a pretty good year. back in a few minutes.

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this is "worldwide exchange." i'm ross westgate. the headlines today, shop more but spend less. that's the take away from the black friday in the u.s. those that weren't in stores were buying online. the trend retailers hope will continue today, cyber monday. british prime minister david cameron brings his largest trade

mission ever to china hoping to kick start a multi-billion dollar deal and put the tensions with the dalai lama behind them. china small caps takes a plunge after beijing has new rules for ipos and it could affect listings by as early as next month. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. investigators are starting to examine whether speed or human error had a part in the crash in new york. mary thompson is on the scene. >> reporter: good morning, ross. over my right shoulder you can see the light that is coming off of the accident scene. it's actually down the hill. as you said, investigators have been here since yesterday morning. the train going off the tracks at about 7:22 a.m. in that fatal

accident. it disrupted one of the busiest commuter lines. a seven car train that was traveling south from poughkeepsie new york to new york city's grand central station, all seven cars jumped the tracks. it landed 11 miles north of the final destination. it stopped short of the harlem and hudson rivers. four of the roughly 100 passengers on board are known dead. 67 have been injured. as we mentioned, the national trans por taportation safety bo heading up an investigation which it says will take anywhere from seven to ten days. the ntsb saying it has recovered the train's black box. yesterday during a press conference it said it would be questioning the train's engineer today. reports say the engineer said he tried to apply the brakes ahead of a significant curve but

according to those reports, the engineer said the brakes did not work. overnight the ntsb said it would try to bring a crane that it feared was leaking fuel. it will lift another one to search for more victims of the accident. now service on this line which serves about 15.9 million commuters a year will be disrupted until the mta can get in and repair the tracks. that is expected to happen once the ntsb concludes its investigation. ross, this is also the second derailment this year for metro-north which operates this hudson line. it is also a series that has plagued the nation. the ntsb will have a press conference. back to you. >> mary, thank you very much, indeed, for that. mary thompson with the latest. more shoppers hit the stores in the u.s. this holiday

weekend. they didn't spend as much. the national retail federation said 140 million people shopped. that's up from 139 million a year ago. the average person spent around $407. that's around 4% less than black friday weekend last year. total spending is expected to hit over $57 billion. around 2.8%. sales in stores will continue and they'll continue to aggressively promote their items. online sales are up 17.3% from thanksgiving and black friday. amazon, ebay, walmart, best buy and target. retailers have been aggressively pushing online deals hoping to benefit from cyber monday. national retail federation predicts 131 million people will shop online versus 139 million

last year. fed ex expects to ship 122 million packages worldwide. joining us is matt cootz. welcome to you both. jason, how are the big boys fairing over this weekend? >> well, good morning, ross. the way i would suggest it to you is that we don't invest on the basis of the outcome of black friday or cyber monday or whatever promotional event it may be. rather, we look at it as a directional indicator, one of several, as to whether consumer discretionary is one that we should be hunting for ideas. generally speaking we are encouraged by the consumer engagement levels. much remains to be seen as to the revenue benefits and the margin benefits of the activity

levels. you know, i think your earlier comments as to the muted activity levels are more suggestive of the diminishment of the effect of these events or the advent of ecommerce. >> greater engagement because there's been a whole huge amount of promotional activity. people shopping in greater numbers but they're spending less. is that going to hit -- that must hit the bottom line a little bit? >> it does, but i think what's important to consider is the macro economic back drop and really what we're seeing here is joermly low inflation. we're seeing directional improvement in u.s. employment levels. that should translate into higher consumer confidence and consumer spending levels throughout the course of this important holiday season. >> let's bring you in for a minute looking at the overall

allocation business. we've seen a big shift of weight. you've gone from the american bank to the eurozone. is one better? >> well, their economy does better but what our economy does best is the patience. the u.s. is already ahead. one thing in the retail sales is i think it continues a mediocre data in the u.s. not extremely good but i think it comes to monetary policy suggesting tapering not in december but eventually sometime next year. that's one important piece for asset allocation, keeping the liquidity for the markets. now in the eurozone and the u.k. if you look at the data, there's been a shift from more domestic economies. also in the eurozone we've seen some of the first signs now that the whole of the economy rather

than relying on exports, now we get some consumption spending. i think that's the way we'll be going forward. more domestically run. >> jason, consumption is such a big part of the u.s. economy, of course. how is the view of the u.s. economy and tapering playing into your overall strategy? >> so, you know, there's still a bit of uncertainty, of course, as to the trajectory of any tapering and the effect on consumer spending levels. i think that's the really optimal word there is uncertainty. market hates uncertainty. louf however, what we're really looking at, i'll relate it back to consumer discretionary, the topic of the day, what we need

to see is the revenue line of cooperation. we look to consumer discretionary, for example, as one economic sector that should at least provide somewhat meaningful revenue growth. and as that relates to consumption levels, obviously that's the most important driver of that. >> jason jones, stick there. let's remind ourselves where u.s. futures are trading at the moment. pretty flat, really. the dow is eight points below fair value. the nasdaq is just above fair value. the s&p 500 is about 1.5 points below. euro penal equities are down. ftse 100 down .75%. the xetra dax came back from its all-time high. the ftse is up 1.5%. here's the thing, george and jason, the dow up 22% this year, the s&p up 26 e the nasdaq up 34%. it's been an exceptional year,

right? so the question is is next year -- what on earth is going to drive gains with this big rerating this year? >> it's growth more than monetary conditions now. so we had one policy setting, it was the rating, the valuation. secondly, we have some improvement in growth. we started the year with the fisc fiscal cliff. what the markets want to see is better growth. i think that's a good chance why growth will be slightly better. one bit is in the u.s., fiscal drag. obviously the housing, we don't expect to grow it potentially double digits. >> you might not have the same amount spent on autos. >> consumption is a very big point. you make a very big difference in the fiscal drag in the u.s. on the positive side. as i already said in the eurozone in the u.k., we see the

domestic consumption coming back in which is the big news. what you have to recognize is when suddenly coming down, it's had a tremendous affect in the u.k. and the eurozone. that's very important. the data, the periphery, it was a drive on growth in 2013. they're moving now into positive territory. recovery into 2014. even the countries countries like ireland, spain will be on positive growth. >> it was negative. >> but if you look at all of the data, i said that was the improvement. driven by experts. the expert gains in spain have been amazing. look to the imf, expecting all of them to be in the primary surplus in 2014. they're not anymore the generators ever crisis. we know in italy, the picture is very different than before. so if you get some growth in the eurozone given expectations, we

can unlock all the valuation. >> jason, are you worried about valuations in the u.s.? >> yes. you know, i guess the best way i can characterize that for you, ross, is that in the course of our investment process we turn over an awful lot of stones and i've been putting a lot more of them back these days. i think subtle activity, buying what you own but what you own at what price is going to be increasingly important going forward. it's certainly going to be driven by idiosyncratic events that create dislocations relative to fair value, but also we're going to be putting an increasing emphasis, like i said earlier, on revenue growth. >> we'll see what happens. jason, thank you for that. george sticks around for a little bit more. don't forget, of course, twitter as well is in note today because after the -- after the float there was a bit of a lock-in

period and goldman sachs is initiating a company with a buy rating on twitter. they got a $46 price. we may see a variety in price today. some people weren't able to take advantage of 234r0e tags. take a short come. look up in the sky. is it a bird, is it a plane? no, it could be a copy of my latest john grisham novel. amazon is talking about robot delivery men. we'll talk about the rise of the machines when we come back. hi honey, did you get the toaster cozy?

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>> i'm right there with you, ross. this is in the category of what will they think of next. as you were just mentioning, jeff baso says, get this, amazon is testing unmanned drones that can deliver packages 30 minutes from placing orders. they showed off the device on the cbs "60 minutes" promise. the so-called octocopters will cary items weighing up to 5 pounds. amazon has been working on cutting down on delivery time, building warehouses closer to urban centers, and making technology more efficient. drone delivery could appeal to members of the amazon prime, which promises unlimited two day shipping for $79 a year. baso says it's possible the drones could be introduced in the next four to five years depending on cost, noise and

safety issues as well as, of course, privacy concerns. >> i know it can't be before 2015 because that's the earliest that we could get the rules from the faa. >> right. >> my guess is that's probably a little optimistic. could it be, you know, four, five years? i think so it will work, it will happen and it's going to be a lot of fun. >> amazon says if it does go ahead the drone delivery service may be called prime air. amazon has already contacted the faa about the project. let's stay tuned, as always, with bezos and amazon. >> let's see what happens. i gather if you're not in hampton they'll leave the package on your porch or just outside which sort of leaves me thinking there could be an awful lot of packages just lying around. >> yeah, especially when you know the drones are like in the neighborhood and, you know,

you'd see them zooming in and whatever. but not that anybody would take advantage of anything like that. >> i'm absolutely sure not. hampton, good to see you. thank you very much for that. >> as always. yeah. so, as we've just been talking, can amazon's idea work? literally you could get pie in the sky. get in touch with us. let us know whether you believe in drone deliveries or john pointed out the flaws in amazon's argument. e-mail us or tweet us or dwekt to me @rosswestgate. george, what do you think? will it catch on? >> the trend is that costs are coming down, transport costs, production costs. that's the whole big theme of manufacturing coming back into the developed markets. i think that's a very important trend be in the falling years. you hear lots of stories about u.s. manufacturers bringing the production back into the u.s. that's one of the things.

it shows how it can be huge. >> transport costs have been huge. >> exactly. save some fuel. that's the important thing now. whether it will work or not. don't know. wild guess. hopefully that will be interesting. >> i think for those not living in concentrated cities is going to work. i think if you're in a city -- >> it will make it easier for me. i buy everything on line. >> we'll see what happens. meanwhile, the white house says it's met its goals to fix the troubled website for this weekend. there's plenty of work remaining. the obama administration says it doubled the capacity to the site. it can handle 50,000 viewers simultaneously. the peak traffic in the coming weeks might eclipse the new capacity as people sign up for the new health care plans by december 23rd. still to come, december's historically been one of the best months of the year. will the markets play santa or

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european equities head towards the u.s. open a little bit later. the ftse 100 off 2/3. the xetra dax pretty much flat. the cac quarante down. there's eight korch sective winning streaks weeks for the dow and s&p and right now futures suggesting its first trading day of december 6 points. on the agenda today, we have november ism manufacturing.

rv maker thor industries and krispy kreme donuts. george soporus is still with us. stock, 80% of the time we go higher in does. anythi -- december. anything to change that this year? >> i don't think so, ross. obviously the retail sales from this past weekend which, you know, they're not blowing the doors off anything but they're not bad either so i think that the market tone is still upward. i think it's going to be a slow grind into the end of the year. the one thing that concerns me is how much money that some of these money fund managers may just want to take off the table. the alternative to that is where are you going to put that? i think that you will find, you know, the s&p probably hovering

around 1800, maybe 1820 going into the end of the year. slow grind up. tapering is not going to happen in december so that's always a good back stop for the market. it's going to be probably at least march at this point. so, you know, it's still pointing to all signs really still going up. >> do you think volume's going to decline quite a bit here? if we had those funds who weren't in in the year already make the scramble. >> no. i think we'll see volume actually pretty good over the next two weeks. if anything, maybe we'll see, you know, funds actually changing out of one sector, coming into the other sector. i think volume's going to be pretty decent. maybe the last week of the year obviously we see that change, but i think we're going to see some activity over the next couple of weeks. again, the retail sales from the last weekend and the numbers coming out, especially what we'll see in the next day or two with cyber monday could have a major, major impact on where we

go the next couple of weeks. >> job index, are we comfortable with that, scott? >> well, comfortable is a pretty -- word that i don't even know that the u.s. government knows what comfortable is. you know, last week or last month's numbers, i don't know that you can really look at those because you had, you know, all the effects of the shutdown, but i think this number coming up is going to point to maybe a consolidation in the marketplace a little bit. maybe we'll get a little bit better of a number but i certainly don't think we'll see anything near the number that the government says they need to really enhance talks of tapering. i think it will be okay. i think there's going to be volume coming into it, but i don't think it's going to change significantly what the market is doing. >> scott, thanks very much indeed for that. george, thank you. i know you remain overweight equities. as we go into the final break -- >> we started the year in the euros. >> thanks for that. george from coots.

that's it for today's "worldwide exchange." coming up next, the first december edition of "squawk box." have a great day.

good morning. today's top stories, less than stellar start. holiday shopping taking a bite out of sales. the future of commerce? amazon suggests drones could then deliver packages to your doorstep within 20 minutes. we'll see whether jeff is yanking our chain. we're definitely going to get that laugh track going for bezos. a deadly derailment around the holidays. 4 people killed, more than 60 injured. it's monday, december 2nd, 2013

and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe concern nin and steve lease man. he is in for andrew ross sorkin. mary is going to be joining us from the deadly derailment in the bronx. before we get to all of that, let's talk about the markets. the dow has been negative only five months out of the last 26 months beginning with october of 2011. that means that the index has been positive more than 80% of the time. here's a look at the major market returns just this year. the dow was up nearly 23%. the s&p up 27%. the nasdaq up more than 34%. if you're following money flows, investors poured $31.6 billion into all